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Nevada Real Estate Exam Prep Questions
with Correct Answers
1. How much time is given to pass the NV salesperson exam? - ANSWER✔✔-4 hours - 240 minutes or 4
hours total
2. How many continuing education hours are required? - ANSWER✔✔-24 hours - State of NV requires
salesperson to complete 24-hours of continuing education every 2 years in each 4 year licensing term
3. In order to obtain a NV real estate license you must have a HS diploma? - ANSWER✔✔-True - you must
have a HS diploma or equivalent
4. How often must you renew your sales agent license? - ANSWER✔✔-Every 2 years - NV salespeople
and brokers must renew their license one year after their initial licensure. After the first renewal cycle
realtors must renew every two years by the original date of issuance.
5. How old do you have to be in NV to obtain a real estate license? - ANSWER✔✔-18 years old
6. Which of these is a fixture? Refrigerator, Microwave, Free Standing Work Bench, or Window Blinds -
ANSWER✔✔-Window blinds - fixtures are articles of personal property that are attached (screwed in,
etc.) and become real property. When window blinds are screwed into the home. They become part of
the improvement that is part of the real property.
7. A ______ is a promise of real property, kept by the lender to secure the loan. - ANSWER✔✔-note - the
legal definition of a note, as it applies to real estate, is a promise of real property to secure a loan. While
the complete term is promissory note, today's professionals simply use the term note and you should
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know that it refers to promissory note. The word promise in the question was a clue to the correct
answer. (a mortgage is also a representation of debit obligation that the borrow keeps. The lender gets
the note.)
8. All of these are good examples of severance except______. - ANSWER✔✔-dividing a single room into
two rooms - severance is converting real property to personal property. When it is removed, it turns back
into personal property.
9. Which lien is required by law to be paid first? - ANSWER✔✔-delinquent property taxes - government
entities make sure they are the first to get a crack at the money when repayment becomes possible.
10. Which of these is not a type of leasehold estate? - ANSWER✔✔-estate in perpetuity - there is no
such estate as "estate in perpetuity." All other answer options are types of leasehold estates.
11. A buyer and seller agree to wait until the seller's listing is expired to make the sale in order to avoid
paying the broker his share. How can the broker get his commission? - ANSWER✔✔-prove in court he
was the procuring cause of sale - a court will likely grant commission to a real estate broker if he can
prove he was the procuring cause of sale, even if the listing expired. Legally this is referred to as a broker
protection clause.
12. A contract can become voidable if one of the parties was being victimized because ____. -
ANSWER✔✔-all of these - They were a minor, misled, or did not agree voluntarily - all 3 provide legal
cause for the contract to be voided.
13. Which of the following is not a requirement for a deed to be valid? - ANSWER✔✔-recording in a
county courthouse - although recording lets others know of the deed's existence and it is probably a
great idea, it is not required for a deed to be a valid document. Many lenders require that it be recorded,
but recording is not required to make the deed valid.
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14. An express contract is ____. - ANSWER✔✔-either written or oral - an express contract is created in
words, either written or oral. The other answer choices are not true.
A good example of an implied contract is _____. - ANSWER✔✔-after a written lease expires, rent is paid
and the check cashed. - the owner shows through his actions that the contract is still valid, even though
now it's simply implied.
16. Which of the following is not true regarding a contract of sale? - ANSWER✔✔-It must bo notarized -
signatures on a contract of sale do not have to notarized.
17. Deed restrictions and easements on a property are considered_____ when written into the deed. -
ANSWER✔✔-exceptions and reservations - these are restrictions or limitations explicitly described in the
deed.
18. In a real estate transaction, the _____ is the current owner of the property and is conveying his or
her property to someone else. - ANSWER✔✔-grantor - the grantor grants a piece of property to the
grantee to complete a transfer of real estate.
19. Substituting a new obligation for an existing one with the intent to cancel the later is called_______?
- ANSWER✔✔-novation - novation is when a new contract is used to replace the initial contract.
20. Why are net listings generally frowned upon in the real estate industry? - ANSWER✔✔-they can lead
to brokers taking advantage of property owners - in a net listing, the seller names a price they want for
their property, and any amount above that sale goes to the broker. Net listings are frowned upon in
many states (illegal in others) because they can lead to brokers not acting in the best interest of the
seller. For example, if a seller wanted $150,000 for their home, and there was an offer for $152,000, in a
net listing the broker may be tempted to not accept the offer because their commission on the sale
would be relatively small.
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21. A mortgage broker's primary role is to _______. - ANSWER✔✔-bring borrowers and lenders together
- the mortgage broker is an intermediary and does not create, sell or underwrite loans (which is the job
of the lender)
22. Mortgage lenders make their money by ______. - ANSWER✔✔-All of these - Application fees, loan
origination fees and annual loan servicing fees - all three of these are common processing and
maintenance fees lenders charge.
23. Subprime loans are usually an option for_____? - ANSWER✔✔-people with subpar credit and come
with a higher interest rate - Subprime loans carry a higher interest rate because the bank/lender feels
they carry the greatest risk of full repayment.
24. Most real estate loans deal with simple interest, the formula for which is _____. - ANSWER✔✔-rate x
loan balance = annual interest - the annual interest in a simple interest setup is the balance multiplied by
the interest rate. Not from real estate expert: when taking the real estate exam, you may need to choose
from a group of answers in which none of them is the answer you might have in mind. When this
happens, find an answer that is correct and choose that one. In this case, you might have been thinking
that I = PRT (I = principal x rate x time), and that would be correct, but it is not one of the choices. Be
ready for confusing questions like this one when you take the test.
25. Which of these is a tool the Federal Reserve can use to control/influence monetary policy and
supply? - ANSWER✔✔-all of them - setting the discount rate, buying and selling securities on the open
market, raising and lowering reserve requirements for banks, - All 3 are used by the federal reserve to
establish the monetary supply
26. What financial instrument is given by a borrower to the lender as a promise to repay a debit? -
ANSWER✔✔-a note - a note or promissory note, is evidence of a debt that can be resold.
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